MARKETING MANAGEMENT

PROJECT ON 4 Ps & ENVIRONMENTAL SCAN Of DISH TV-DTH SERVICE

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Dr. Reeti Aggarwal Mandira Ahluwalia Pankaj Tiwari Pawan Sachan Nitin Tiwari Priya Sharma (JIML11-PGDM-078) (JIML11-PGDM-109) (JIML11-FS- 038) (JIML11-RM-09) (JIML11-RM-010)

Jaipuria Institute of Management, Lucknow

INDEX

1) Introduction 2) The 4 Ps of Marketing Product Price Place Promotion 3) Environmental Analysis Technological forces Demographic forces Social ,cultural & political forces Government & legal forces Economics forces 4) Conclusion

Jaipuria Institute of Management, Lucknow

INTRODUCTION
Dishtv, India's pioneer and first Direct to Home (DTH) Entertainment Company, commercially launched in the year 2005, has brought the latest in digital technology in television viewing into the Indian Household. Powered by the technological prowess, Dishtv reaches homes across the country including areas such as the Siachen and Ladakh, places where television entertainment was a mere dream. Dishtv is the only DTH platform that provides LIVE television on Computers, in the aircrafts - aboard Kingfisher Airlines, on trains - aboard Palace on Wheels & Royal Rajasthan on Wheels and in cars, buses & Ships. Dishtv is a part of the Essel Group venture. The Group has a vast range of national and global business interests that include media programming, broadcasting & distribution, packaging, entertainment, online gaming and telecom, in close synergies with ventures active in the areas of content, distribution and infrastructure. Essel Group has always been a pioneer - Zee TV the first Indian satellite channel, Siticable the first MSO, Esselworld the first theme park, Playwin the first online lottery, Essel Propack, which is the world's No. 1 in packaging - were all revolutionary concepts in their respective fields. Companys vision:Dish TV has always stood by its promise of pioneering vision, adherence to quality, technological innovations, and breakthrough initiatives. Our philosophy of delivering value and service excellence to our customers, combined with strong business leadership has made Dish TV the largest DTH service provider in the country. Dish TV has always been at the forefront of bringing innovative and path-breaking offers, creating industry benchmarks. The DTH segment has seen record additions, and we believe that this trend is likely to continue. Innovation is the key driver of Dish TV, and the companys strong commercial position is the result of consistent commitment to advancing technologies. Were winning in the marketplace, investing for the future, and confident in the enormous opportunity that lies ahead. Every month, around one million subscribers are joining in the DTH platform. It is

Jaipuria Institute of Management, Lucknow expected that the country will overtake the US by sheer numbers within the early part of the coming year.

Marketing strategies Dish TV is known for its dedicated customer focus, and they constantly endeavour to deliver sustained value to their customers through innovative product offerings and service initiatives. As the pioneer and undisputed leader in the Indian DTH industry, they are committed in delighting their customers and offering innovations to enrich their TV viewing experience. Dish TV maintains a 360 degree approach in marketing, with uniform communication across media. They firmly believe that innovation is the key differentiator for their business, and channelling it appropriately helps them to continuously deliver enhanced experiences to their customers. Dish TV offers maximum entertainment options and the largest content basket at an attractive price point. Our aim is to provide the consumers with the best of home entertainment and convenience, through great value propositions.

THE 4 P'S OF MARKETING

Marketing decisions generally fall into the following four controllable categories:

Product Price Place (distribution) Promotion

These four P's are the parameters that the marketing manager can control, subject to the internal and external constraints of the marketing environment. The goal is to make decisions that center the four P's on the customers in the target market in order to create perceived value and generate a positive response.

The Marketing Mix

Jaipuria Institute of Management, Lucknow Product Decisions The term "product" refers to tangible, physical products as well as services. Here are some examples of the product decisions to be made:
1. 2. 3. 4. 5. 6.

Brand name Styling Quality Repairs and Support Warranty Accessories and services

Price Decisions Some examples of pricing decisions to be made include:

Pricing strategy Suggested retail price Volume discounts and wholesale pricing Cash and early payment discounts Seasonal pricing

Place Decisions Distribution is about getting the products to the customer. Some examples of distribution decisions include:

Distribution channels Specific channel members Inventory management Warehousing Distribution centres Order processing Transportation

Promotion Decisions In the context of the marketing mix, promotion represents the various aspects of marketing communication, that is, the communication of information about the product with the goal of generating a positive customer response. Marketing communication decisions include:

Promotional strategy (push, pull, etc.) Advertising Personal selling & sales force Sales promotions

Jaipuria Institute of Management, Lucknow Dish TV products:Dishtv's USP's: With consumer service a huge focus of the Dishtv strategy, the company plans to establish an expansive service network across the country. The main USP's of Dishtv are: I. Value Added Services: MOD - Movie on Demand For the first time in the history of entertainment industry viewers can order movies on TV. With MOD the subscribers can order a movie when they want. Today, Dishtv is the only platform that offers blockbuster Bollywood & Hollywood movies and recent addition to the MOD library is regional language titles in Tamil, Telugu and Kannad languages. The subscribers can enjoy the movies ordered at their own convenience in the theatre like experience with true digital picture quality! Dedicated movie channels - Dishtv have allocated 6 dedicated channels to MOD and the viewer can watch their favourite movies in any of these channels. Movie viewing time -. Once a movie has been ordered, the viewer can repeat telecast of the movie/s for as many times as they want (for the next 24 hrs on the 4 dedicated channels). Multi audio feed Cartoon Channels are the new-age child's religion with daily viewing a must-do. The cartoon channels are usually aired in one language only i.e. Hindi language. But with Dishtv multi-audio feed facility the viewer now has the option of viewing their favourite channels in Hindi and English - Cartoon Network, Pogo, Nickelodeon, The History Channel, Discovery Channel, Disney Channel, Toon Disney (also available in Tamil & Telugu). The viewer can change the language merely at the click of the button.

Gaming Dishtv' s gaming service is divide into 3 different offering. Playjam is a dedicated gaming channel for people of all age group. At any given point of time it will have 8 games and the games will update on monthly basis. Minikids TV is an a fun games channel for preschoolers where the games are interestingly navigated by special animated characters that help kids not only enjoy themselves but learn to master various skills at the same time. Quizzy service allows viewers to enhance their general knowledge and kill boredom at any given time. So no hassle of going on the net or connecting complicated gizmos, you can sit back on your sofa and enjoy the games

Jaipuria Institute of Management, Lucknow Active services

ICICI ACTIVE:-

Dishtv had launched the innovative Interactive Banking Service ICICI ACTIVE in association with ICICI Bank. This service enables Dish TV viewers to access information on ICICI Bank products and services, from the convenience of their homes. Powered by moster.com, world's no. 1 job site, MONSTERJOBS ACTIVE empowers job aspirants with thousands of employment opportunities.

MONSTERJOBS ACTIVE:-

SHAADI ACTIVE:- 'Shaadi Active' service in collaboration with world's largest matrimony site shaadi.com, redefines the experience of searching for a life partner by offering thousands of marriage proposals. TRAVEL ACTIVE:- 'Travel Active', in association with leading travel portal, Yatra.com, TV-viewers will now be able to search and book the best selling holiday packages, hotels, international & domestic airline tickets at discounted prices.

GAMES ACTIVE:-

3 interactive products: Minikids, an edutainment channel for preschoolers, Playjam - a dedicated gaming channel for people of all age group and Quizzy that allows you to enhance your general knowledge

BHAKTI ACTIVE:- Dishtv subscribers can now get Live Gurbani from Bangla Sahib and Nanded Sahib, Aarti of Sai Baba from Shirdi & Ganesh Aarti from Siddhi Vinayak, Aarti from Tirupati Balaji, Live Ganga Aarti from Haridwar and Bhasm Aarti of Mahakaal from Ujjain. Dishtv customers can now get blessed at the press of a button in the comfort of their home 24X7. Electronic Programme Guide Imagine being able to get a full TV programme guide while selecting a channel to watch.! Electronic Programme Guide now provides the Dishtv viewer the opportunity of knowing what's on & when at the click of a button from the remote.

Jaipuria Institute of Management, Lucknow Service Orientation: Dishtv has 24* 7 call centre with 1600 seats at 4 different locations in 11 different languages across the country to take care of subscriber requirements any point of time. Dishtv has set up a commendable service infrastructure backend by a mammoth pan India team of over 25,000 direct and indirect service personnel. 350 Dish Care Centres (DCC) and service franchises are operational in the top 120+ cities of the country, each manned by trained field and backend staff, as well as infrastructure facilities as per strict company guidelines.

Dish TV Prices:When marketers talk about what they do as part of their responsibilities for marketing products, the tasks associated with setting price are often not at the top of the list. Marketers are much more likely to discuss their activities related to promotion, product development, market research and other tasks that are viewed as the more interesting and exciting parts of the job. Yet pricing decisions can have important consequences for the marketing organization and the attention given by the marketer to pricing is just as important as the attention given to more recognizable marketing activities. Some reasons pricing is important include:

Most Flexible Marketing Mix Variable For marketers price is the most adjustable of all marketing decisions. Unlike product and distribution decisions, which can take

Jaipuria Institute of Management, Lucknow months or years to change, or some forms of promotion which can be time consuming to alter (e.g., television advertisement), price can be changed very rapidly. The flexibility of pricing decisions is particularly important in times when the marketer seeks to quickly stimulate demand or respond to competitor price actions. For instance, a marketer can agree to a field salespersons request to lower price for a potential prospect during a phone conversation. Likewise a marketer in charge of online operations can raise prices on hot selling products with the click of a few website buttons. Setting the Right Price Pricing decisions made hastily without sufficient research, analysis, and strategic evaluation can lead to the marketing organization losing revenue. Prices set too low may mean the company is missing out on additional profits that could be earned if the target market is willing to spend more to acquire the product. Additionally, attempts to raise an initially low priced product to a higher price may be met by customer resistance as they may feel the marketer is attempting to take advantage of their customers. Prices set too high can also impact revenue as it prevents interested customers from purchasing the product. Setting the right price level often takes considerable market knowledge and, especially with new products, testing of different pricing options. Trigger of First Impressions - Often times customers perception of a product is formed as soon as they learn the price, such as when a product is first seen when walking down the aisle of a store. While the final decision to make a purchase may be based on the value offered by the entire marketing offering (i.e., entire product), it is possible the customer will not evaluate a marketers product at all based on price alone. It is important for marketers to know if customers are more likely to dismiss a product when all they know is its price. If so, pricing may become the most important of all marketing decisions if it can be shown that customers are avoiding learning more about the product because of the price. Important Part of Sales Promotion Many times price adjustments are part of sales promotions that lower price for a short term to stimulate interest in the product. However, as we noted in our discussion of promotional pricing in the Sales Promotion tutorial, marketers must guard against the temptation to adjust prices too frequently since continually increasing and decreasing price can lead customers to be conditioned to anticipate price reductions and, consequently, withhold purchase until the price reduction occurs again

Dish TV provides the initial installation of set top box at 1090/-. It includes the cost of the set top box and one month subscription of any pack. Dish TV also provides their HD connection (dish true HD) at 2090/ Dish TV provides a lot of options to customers to choose the pack of their choice: Platinum Titanium annual pack Gold pack Silver pack South Platinum South Titanium annual pack South Gold pack South Silver pack

Jaipuria Institute of Management, Lucknow Child Pack Dish a la carte Sports bonanza pack It also provides special offers on packs by creating a combo pack for 3 months with some extra benefits and low cost. Dish TV Promotion:Broadly speaking the promotional goals of the company are: 1. To create awareness about DTH 2. To encourage attrition from cable to DTH The company plans to allocate a substantial chunk of its budget for spending on communication through electronic and print media for initially. As almost 68 % of respondents preferred programs in their local languages and almost 90 % of respondents preferred programs in Hindi, the message can be communicated effectively by utilizing such preferences. According to our findings, most of the T.V viewing happens between 6 PM to 12 AM. Therefore the advertisements on electronic media should be aired during this time period. In addition to that the company plans to utilize the substantial subscriber base as captive audience and plans to send promotion messages to them, in form of SMS, at least on weekly basis to increase recall and to create brand awareness. Dish TV, India's first and largest DTH service provider, which has recently roped in Bollywood actor Shah Rukh Khan, as its brand ambassador has launched a advertising campaign with a pervasive theme, "Don't be Santusht Wish Karo, Dish Karo". The theme went long way in reinforcing the attributes of the brand and reiterate its positioning and the campaign will be launched simultaneously through a multi-media blitzkrieg across the country covering all media and below the line promotional activities.The campaign was a satire on the 'complacent with sub-optimal' attitude of people at large. Most of us are not happy with things not being perfect around us but at the same time do nothing about it; we have an amazing 'chalta hai attitude'. The campaign attempts to shake this complacence and question people why are they 'santusht' with so many issues? why do they settle for less? why don't they ask for the best?, in all spheres of life. It urges them to

Jaipuria Institute of Management, Lucknow give up sub-optimal quality of cable viewing and move to the best in quality of entertainment, Dish TV.

Dish TV Places:Dishtv has a vast distribution network of about 1400 distributors & 55,000 dealers that spans around 6600 towns across the country With 267 digital channels and services to offer, Dishtv truly is the best in TV entertainment. With channels for the sports enthusiast, from daily dose of soaps to news, from a bevy of cartoons to infotainment, from a plethora of music channels to movie channels - its all happening on Dishtv. With the complete Zee bouquet of channels, the One Alliance bouquet, the Star bouquet etc, it offers the complete range of channels to its subscribers. Since the channels are received through a mini dish, direct from the satellite to the viewer's home, the subscriber gets absolutely uninterrupted viewing without any transmission cuts. The rural push of DTH Industry What mobile phone did to communication across India, DTH is doing to television viewing Initially considered an exclusive for urban families, DTH services have now successfully penetrated in the rural market which has 70 million TV owning households (2010). Urban Rural 2008 73% 34% 2009 79% 49% 2010 86% 64%

According to TAM 2010 report, share of pay DTH among all DTH households has been 86% for urban compared tto 64% for rural areas. Yet the growth of DTH using households has been stupendous if compared to urban households. The growth of digital viewing in rural households emerges from the affordability factor. The set-top-boxes and connections are cheap and so are the television sets. Bharti Airtel wooed customers in smaller towns by providing new DTH subscribers with free talk time on their Airtel phone connections. TATA Sky has introduced its programming guide in Hindi whereas others are offering attractive but cost-effective prices in rural areas. The chart below shows that a number of states (largely rural) in the country have been showing great in option for digital TV. Suggestion There are many D2H service providers in India now e.g. Dish TV, Tata Sky, Sun TV, Airtel, Videocon etc. They are charging Rs 1000 to Rs 5000 for set up box and dish. Then onwards their charges vary for Rs 200 to Rs 400 per month. I believe the biggest revenue earner for them is monthly subscription and not set up cost. Surely that set up cost (Box and Dish) is not in house managed things and it must have been outsourced to other company. I feel they are little keener for that amount and loosing large customer base. E.g. many people lives in multi story towers in cities. We all know multiple cable connections can be given

Jaipuria Institute of Management, Lucknow from single Dish but they need to have different Set up Box. One cable company provides that for Rs 300 in some places. If D2H Service companies provide only 1 dish and multiple Set up box at very reasonable price to people living in multiple story building they can get 50 to100 customers at a time.

ENVIRONMENT ANALYSIS
The purpose of Marketing Environment Analysis is: To know the relevant events & trends in the environment. Discover the opportunities & threats. Environmental projections. Assess scope of opportunities. Right fit between the environment and business unit Formulate the right marketing strategy

Components of Marketing environment:1) 2) 3) 4) 5) 6) Demographic forces Social -cultural Government & legal forces Economics forces Technological forces Political forces

Demographic forces Demographic changes take place due to the difference in the population in terms of size, density, location, age, sex, race, occupation and other statistics. As the market gets fragmented, niche will become more & more desirable. The increased interest in unique content channels is in line with the international trends, where once the market matures, consumer needs come into focus. Thus Channels on education, women, Gardening a variety of prots, wellness and religion, etc. make their appearance, dishTV will be launching several of these

Jaipuria Institute of Management, Lucknow niche channels to create a unique and exciting offering for its viewers of every age, gender, income class, region segment etc. DishTV recently launched children Festival with abouquet of over 25 supr-hit films across various category targeting children segment. Besides this value added services like Games Active, Bhakti active services etc carters to needs of customers from various age groups and genders.

Demographic factors and challenges before Dish TV Age is one of the basic forces that affect the preference of the TV channels. Children within the age group of 4 to 15 will like to watch cartoon channels. Youngsters would like to watch more of music, sports and entertainment channels. Different offer pack also varies from class to class. A high class family will go for that package which offers more English channels. A professional will choose the pack of business channels and news channels. Housewives will choose those channels which have daily soaps and cookery channels. Regional difference occurs due to change in the preferences of the rural and urban population. Thus dish TV can come up with different language specific packages.

Socio-cultural forces:The socio-cultural dimensions of the environment consist of customs, lifestyles, and values that characterize the society in which the firm operates. Socio-cultural components of the environment influence the ability of the firm to obtain resources, make its goods and services, and function within the society. Socio-cultural factors include anything within the context of society that has the potential to affect an organization. Population demographics, rising educational levels, norms and values, and attitudes toward social responsibility are examples of socio-cultural variables. Factors and challenges before Dish TV: For joint families Dishtv got an offer that from 1 connection they can haave multiple connections. They have to add mythological channels such as Astha because of cultural value. They have to give preference to regional languages. Problems created by normal cable network. Problems created by different NGOs on some channels.

Government & Legal forces:The Political-legal dimension of the general environment also affects business activity. The philosophy of the political parties in power influences business practices. The legal environment serves to define what organizations can and cannot do at a particular point in time.

Jaipuria Institute of Management, Lucknow Factors and challenges before Dish TV: 49% FDI allowed by government to promote the sector. Govt. banned some channels, like Peace TV, Q TV Etc. TRAI Acts as regulator for the industry which imposes eligibility criteria and other obligations, if not followed can also impose severe penalties.

Economic forces The economy always has an impact on marketing--whether it is weak or strong. Interestingly, marketers may be affected positively or negatively by a strong or weak economy. Making lemons out of lemonade can benefit certain types of businesses in a weak economy--a strong economy can be negative for others. The bottom line: it pays to understand the market and the effect the economy will have on them. Factors and challenges before Dish TV: With less disposable income people will tend to buy cheaper cable TV networks. In high Inflation period as it is prevailing these days, people will find cheaper to spend on cable TV networks.

Technological forces Dishtv uses NSS-6 satellite to broadcast its programmes. Dishtv, India's first KU-band DTH entertainment service, hopped on to NSS-6 at from an INSAT satellite in July 2004. The change in the satellite was to increase the channel offering as NSS 6 offered more transponder capacity. It has a unique feature on board the satellite called Automatic Level Control (ALC) which keeps satellite power at the maximum, even in case of rainfall or storms affecting power received at satellite, bringing the users the same quality of reception in all weather conditions. NSS-6 Dishtv's service satellite is equipped with both 36 and 54 MHz transponders. The wide bandwidth 45 MHz transponders are ideally suited for high motion TV channels, multimedia and games which need nigh bandwidth. Factors and challenges before Dish TV:-

Jaipuria Institute of Management, Lucknow For HD video quality people also need to buy TV with HD feature which may be costly for the middle class. Channels are also required to be with HD quality transmission. Cost of establishing new technology is too high. Rate of technological obsolescence is high due to new technology.

CONCLUSION
The total number of TV owning households in India is estimated at 117 million. This represents a 54% penetration of TV in Indian households. Out of this, Cable and Satellite households are 68 million. The DTH industry is currently pegged at 2.6 million subscribers. India is also one of the fastest growing and largest television markets in the world. Television households are estimated to grow to 165 million in 2011, resulting in an annual compounded growth rate of 6.5% p.a. The Indian Entertainment & Media Industry is estimated to be Rs. 450 billion and is on a growth overdrive, with a conservative projected compounded annual growth rate of 18% over the next 5 years. The DTH Industry revenue is expected to grow @ 80% compounded per annum over the next 5 years and will be in the range of Rs.100 billion in 2011. Due to the continued buoyancy in the Indian economy and an annual growth rate of over 9%, the country's Gross Domestic Product is touching US$ One trillion. This, coupled with increasing penetration of TVs, will give a boost to the demand for better quality products like DTH. In terms of sheer numbers, DTH subscribers are expected to touch 27 million in 2011 and 61 million in 2015. The industry will move towards adoption of best business practices due to enhanced consumer awareness about the quality of content, convergence, customisation, configuration, digitalisation, dynamic pricing, product innovation and contemporary global viewing experiences. Customers will increasingly demand content from content providers, which they can engage and relate with and which has relevance to their social and leisure.